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Greening urban logistics

by Dr Debasish Sur, Pramit Sur, Priyangshu Ganguly
Indian Management November 2024

While challenges remain, the ongoing development and adoption of green logistics technology, smart cities infrastructure, and logistics parks are reshaping the landscape of urban logistics.

In today’s rapidly evolving world, the convergence of technology and sustainability has become paramount in reshaping urban logistics. From the adoption of electric and hybrid vehicles to the implementation of smart city initiatives and the development of logistics parks, innovative solutions are driving efficiency while mitigating environmental impact.

The present paper explores the transformative potential of green logistics technology, smart cities infrastructure, and logistics parks in creating sustainable and resilient urban environments. By delving into each aspect, this article seeks to uncover how these advancements are not only optimising logistics operations but also paving the way towards a greener future for cities worldwide.

Green logistics technology

1. Electric and hybrid vehicles: Electric and hybrid vehicles are revolutionising the logistics industry by significantly reducing carbon emissions and promoting sustainability in the following ways:

• Continuous innovation: By encouraging employees to contribute their ideas and collaborate on projects, Google has maintained a steady stream of innovative products and services that meet the evolving needs of its users.

• High employee engagement: The culture of co-creation fosters high levels of employee engagement and satisfaction. Employees feel valued and motivated to contribute to the company’s success, leading to lower turnover rates.

• Market leadership: Google’s commitment to innovation and collaboration has solidified its position as a market leader in the technology industry. The company’s ability to adapt and respond to changing market dynamics is largely attributed to the active involvement of its employees.

2. Alternative fuels: Exploring alternative fuels such as biofuels, hydrogen fuel cells, and others offers promising avenues for further reducing the carbon footprint of logistics operations:

• Biofuels: Derived from renewable sources such as plants or waste biomass, biofuels can significantly reduce lifecycle greenhouse gas emissions compared to conventional fuels. They can be used directly in existing diesel engines with minimal modifications.

• Hydrogen fuel cells: Hydrogenpowered fuel cells produce electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapour and heat as byproducts. They offer zero-emission propulsion and are particularly suitable for heavy-duty vehicles.

• Sustainable alternatives: Continued research into other sustainable alternatives, such as synthetic fuels produced from renewable electricity (e.g., Powerto-Liquid), holds promise for further reducing carbon emissions in logistics.

3. Optimised route planning: Utilising smart algorithms and AI for optimised route planning enhances efficiency and reduces environmental impact in logistics.

• Real-time data: Integration of IoT sensors and GPS tracking provides real-time data on traffic conditions, weather, and road closures, allowing for dynamic route adjustments to avoid congestion.

Algorithmic optimisation: Advanced algorithms analyse historical data and real-time inputs to determine the most efficient routes, considering factors like traffic patterns, delivery schedules, and vehicle capacities.

• Emission reduction: By minimising unnecessary mileage and idle time, optimised route planning reduces fuel consumption and emissions, contributing to environmental sustainability.

4. Last-mile delivery innovations: Efficient and eco-friendly last-mile delivery solutions are critical for reducing congestion and emissions in urban areas:

• Drones: Unmanned aerial vehicles (UAVs) or drones can deliver small packages directly to customers’ doorsteps, bypassing traffic congestion and reducing delivery times. They operate on electricity, further minimising environmental impact.

Autonomous vehicles: Self-driving delivery vehicles are being developed to navigate urban environments autonomously, reducing the need for human drivers and optimising delivery routes for efficiency.

Microhubs: Strategically located microhubs in urban centres enable consolidation of deliveries, reducing the number of individual trips and optimising the use of electric or hybrid vehicles for last-mile delivery. friendly practices in warehouses enhances sustainability throughout the logistics supply chain:

• Energy-efficient lighting: Switching to LED lighting reduces energy consumption and operating costs compared to traditional lighting systems.

Solar panels: Installing solar panels on warehouse rooftops generates renewable electricity, reducing dependence on grid power and lowering carbon emissions.

Sustainable packaging: Using biodegradable or recyclable packaging materials reduces waste and environmental impact associated with packaging disposal.

Water conservation: Implementing water-saving technologies like rainwater harvesting systems reduces water consumption and supports sustainable water management practices. So, embracing green logistics technology not only enhances operational efficiency and cost-effectiveness but also plays a crucial role in mitigating environmental impact.

By integrating electric and hybrid vehicles, exploring alternative fuels, optimising route planning with AI, innovating lastmile delivery solutions, and adopting green practices in warehouses, the logistics industry can contribute significantly to sustainable development goals while meeting the growing demand for efficient and eco-friendly transportation solutions. Smart cities

  1. IoT integration: Internet of Things (IoT) devices play a crucial role in real-time data collection and management in urban logistics:
  2. Sensor networks: IoT sensors embedded in vehicles, infrastructure (like roads and bridges), and logistics assets (containers, pallets) collect real-time data on location, status, and environmental conditions.

•Data transmission: Data from IoT devices is transmitted to centralised platforms where it is processed and analysed. This enables logistics operators to monitor and optimise supply chain operations continuously.

Predictive maintenance: IoT sensors can detect wear and tear in vehicles and infrastructure, allowing for predictive maintenance scheduling to minimise downtime and operational disruptions.

Inventory management: IoTenabled inventory tracking systems provide real-time visibility into stock levels and location, optimising inventory management and reducing the risk of stockouts or overstocking.

2. Traffic management: Smart traffic management systems leverage technology to optimise freight movement within cities:

• Smart traffic signals: Traffic signals equipped with sensors and connected to central management systems adjust signal timings based on real-time traffic conditions, prioritising freight vehicles to reduce congestion and optimise flow.

Congestion prediction: Advanced algorithms analyse historical and realtime traffic data to predict congestion hotspots and suggest alternative routes or timing adjustments for freight vehicles.

Dynamic Routing: Integration with logistics fleet management systems allows for dynamic routing adjustments in response to traffic conditions, minimising delivery times and fuel consumption.

3. Data analytics: Big data analytics play a pivotal role in enhancing logistics efficiency and minimising environmental impact:

Route optimisation: Analysing vast amounts of data on traffic patterns, weather conditions, and delivery schedules enables logistics operators to optimise routes for efficiency, reducing fuel consumption and emissions.

• Demand forecasting: Predictive analytics models forecast demand fluctuations, enabling better inventory management and resource allocation to meet customer needs while minimising waste.

Environmental impact assessment: Data analytics help quantify and analyse the environmental impact of logistics operations, facilitating informed decision-making to implement sustainability initiatives.

4. Shared mobility solutions: Shared mobility options contribute to reducing traffic congestion and pollution in urban areas:

Bike-sharing and car-sharing: Integrated bike-sharing programs and car-sharing services provide flexible and sustainable transportation alternatives for urban residents and logistics operators.

Micro-mobility solutions: Electric scooters and small electric vehicles for last-mile deliveries reduce reliance on traditional delivery trucks, easing congestion and lowering emissions in densely populated areas.

Collaborative logistics: Sharing logistics resources such as warehouse space or delivery routes among multiple companies enhances efficiency and reduces overall transportation costs and environmental impact.

5. Urban consolidation centres: Urban Consolidation Centres (UCCs) serve as centralised hubs for consolidating freight to minimise congestion and pollution in city centres:

• Efficient freight distribution: Goods from multiple suppliers are consolidated at UCCs before being distributed to their final destinations using fewer and more efficient delivery vehicles.

Reduced mileage: By reducing the number of vehicles entering city centres and consolidating deliveries, UCCs minimise vehicle miles travelled (VMT), lowering fuel consumption, emissions, and traffic congestion.

• Optimised last-mile delivery: UCCs enable more efficient last-mile delivery operations by providing a staging area for sorting and organising deliveries, optimising routes, and coordinating schedules to minimise idle time and vehicle emissions.

Thus, Smart Cities leverage IoT integration, advanced traffic management systems, data analytics, shared mobility solutions, and Urban Consolidation Centres to transform urban logistics. These technologies and strategies not only improve logistics efficiency, reduce delivery times, and minimise environmental impact but also contribute to creating more liveable, sustainable, and resilient cities.

Embracing these smart city initiatives is essential for addressing the challenges of urbanisation and ensuring a greener future for urban logistics. ogistics parks

1. Location and design: Logistics parks are strategically located and designed to optimise freight movement while minimising environmental impact:

• Proximity to transportation networks: Logistics parks are typically located near major highways, ports, airports, and rail terminals to facilitate efficient goods movement and reduce transportation costs and time.

Urban sprawl mitigation: By centralising logistics activities in designated areas, logistics parks help mitigate urban sprawl and minimise the environmental footprint associated with transportation and logistics operations.

Land use planning: Careful land use planning considers environmental factors such as wildlife habitats, water resources, and air quality to minimise disruptions and conserve natural ecosystems.

2. Multimodal connectivity: Integration with various transportation modes enhances the efficiency and flexibility of logistics operations:

• Rail, road, and waterways: Logistics parks are designed with access to multiple transportation modes, enabling seamless intermodal freight movement. This integration reduces reliance on trucks alone and optimises transportation routes based on cargo type and destination.

• Intermodal terminals: Some logistics parks include intermodal terminals where containers can be transferred between different modes of transportation (e.g., ship to rail or truck to rail), optimising logistics efficiency and reducing transportation costs.

• Dynamic routing: Integration with logistics fleet management systems allows for dynamic routing adjustments in response to traffic conditions, minimising delivery times and fuel consumption.

3. Green building standards: Logistics parks are increasingly adopting green building certifications and sustainable construction practices:

LEED certification: Logistics park developers strive to achieve Leadership in Energy and Environmental Design (LEED) certification, ensuring energy efficiency, water conservation, and reduced environmental impact in building design and operations.

Energy-efficient infrastructure: Installation of energy-efficient lighting, heating, ventilation, and air conditioning (HVAC) systems reduces energy consumption and operating costs while minimising carbon emissions.

Renewable energy: Integration of renewable energy sources such as solar panels or wind turbines helps meet electricity needs sustainably and reduces dependency on fossil fuels.

4. Advanced warehouse technologies: Automation and robotics play a crucial role in enhancing operational efficiency within logistics parks:

• Automated storage and retrieval systems (ASRS): ASRS automate inventory management, storage, and retrieval processes, optimising warehouse space and reducing labor costs.

• Robotics for loading/unloading: Automated guided vehicles (AGVs) and robotic arms streamline loading and unloading operations, reducing turnaround times and improving throughput.

Inventory management systems: RFID (Radio Frequency Identification) and IoT-enabled systems provide realtime visibility and traceability of goods, improving inventory accuracy and order fulfillment efficiency.

5. Sustainable practices: Implementation of sustainable practices within logistics parks further enhances environmental stewardship:

Rainwater harvesting: Collection and storage of rainwater for landscaping, irrigation, or non-potable uses reduce dependency on municipal water sources and promote water conservation.

Waste recycling: Comprehensive recycling programs for packaging materials, paper, plastics, and other waste streams minimise landfill contributions and promote resource reuse.

• Environmental management systems: Adoption of EMS (Environmental Management Systems) ensures compliance with environmental regulations and continuous improvement in environmental performance.

Green procurement: Procuring eco-friendly products and materials for construction, maintenance, and operations supports sustainable supply chain practices and reduces environmental impact.

Hence, logistics parks are pivotal in modern supply chain management, integrating strategic location, multimodal connectivity, green building standards, advanced technologies, and sustainable practices to optimise logistics efficiency while minimising environmental impact. By embracing these principles, logistics parks contribute to creating more sustainable and resilient logistics infrastructure for the future.

Concluding remarks

While challenges remain, the ongoing development and adoption of green logistics technology, smart cities infrastructure, and logistics parks are reshaping the landscape of urban logistics. By harnessing innovation and sustainability, stakeholders in the logistics industry are not only improving their operational efficiencies but are also making significant strides towards creating greener, smarter, and more resilient cities worldwide.

References

• European Environment Agency. (2021). Electric vehicles in Europe — the support and benefits from the European Union.

• World Economic Forum. (2020). The Future of the Last-Mile Ecosystem.

• International Association of Public Transport (UITP). (2019).

Shared Mobility: How to make it work for cities and citizens.

Dr Debasish Sur is the author of Greening urban logistics.

Pramit Sur is the author ofGreening urban logistics.

Priyangshu Ganguly is the author of Greening urban logistics.

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